1. EQ #1 – AGEC 105
Worth 4 points.
1. Several months ago oil prices rose to roughly $100 per barrel. Economic analysts were concerned with impacts of this substantial price increase on the U.S. economy. Is this issue a microeconomics issue or a macroeconomics issue?
2. Budweiser of St. Louis, Missouri, has three alternatives for manufacturing alcoholic beverages:
(a) Manufacture Budweiser alone and obtain a profit of $50 million
(b) Manufacture Bud Light alone and obtain a profit of $40 million
(c) Manufacture both regular and light beer and obtain a profit of $80 million
What is the opportunity cost for Budweiser, given these alternatives?
3. _____________ is an applied social science that deals with how producers, consumers, and societies use scarce resources in the food and fiber sector.
4. Who is the current Secretary of Agriculture? __________________